Here’s How Mark Cuban Spent His First $1 Billion and What You Can Learn From It
Written by
Jennifer Taylor
Edited by
Rebekah Evans
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Mark Cuban marked his entry to the wealthy billionaires’ club by going on a major spending spree. He achieved this elite status in 1999, when he — and business partner Todd Wagner — sold video portal Broadcast.com to Yahoo for $5.7 billion, as highlighted by Forbes.
While monumentally larger, this wasn’t his first financial windfall. Cuban sold his first company MicroSolutions for $6 million in 1990, according to Maxim.com, leaving him with approximately $2 million in after-tax profit.
Cuban recently explained how he spent his first billion, in a Dropship video posted on TikTok. Keep reading to find out what he did with his massive payout and what you can learn from it.
Barbara Corcoran is also known for splurging on things she likes — here’s what she spends her wealth on.
Private Jet
Since he values time, Cuban purchased a Gulfstream G5 for $40 million. He said his test flight was the first time he’d ever been on a private plane.
Practical Takeaway: You might not be buying a private jet, but Cuban’s emphasis on making purchases that save you time or otherwise simplify your life is worth noting. For example, you might hire a professional cleaning service to clean your home, so you can focus your time and energy elsewhere.
Dallas Mavericks
A purchase based on sheer want, Cuban bought the Dallas Mavericks for $285 million. He said there wasn’t enough money in the universe to represent what buying the NBA team was worth to him.
Practical Takeaway: The average person will never buy an NBA team, but there’s nothing wrong with spending extra on something you truly enjoy. As long as you can afford it, it’s okay to indulge yourself with items or experiences you’re passionate about.
Lavish Home
One of Cuban’s former business partners presented him with the opportunity to buy an extravagant home that was about to go into foreclosure. Despite never touring the property in person, he paid $12.5 million for it — but Yahoo reported it was worth $25 million — raised his three kids there and still lives there today.
Practical Takeaway: Cuban trusted his gut that purchasing the home would be a good deal. While you shouldn’t spend recklessly and make rash financial decisions, taking a risk on an investment you feel good about can prove extremely rewarding.
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